PEFINDO has affirmed its idA ratings to PT Merdeka Battery Materials Tbk

(April 13, 2026)--PEFINDO has affirmed its idA ratings to PT Merdeka Battery Materials Tbk (MBMA) and its outstanding bonds as well as its idA(sy) rating for the Company’s outstanding sukuk. Outlook for the corporate rating is stable. The rating reflects MBMA’s vertically integrated operations, strong synergy with the group and strategic partners, as well as sizeable mining reserves and resources. However, the rating is constrained by the risk of developing new projects and exposure to nickel price volatility.

The rating may be raised if MBMA strengthens its diversification profile, including having more downstream projects in the value chain of electric vehicle battery materials. The rating may also be raised if MBMA successfully generates higher revenue and improves its profit margins from its projects than projected, which will further positively affect its financial profile on a sustained basis. However, the rating may be lowered if MBMA generates lower revenue and profit margins than projected due to the inability of the Company’s operating entities to perform as projected or a significant deterioration in nickel prices. The rating may also be under pressure if the Company obtains substantial debt to finance its new projects without being compensated by higher revenue and EBITDA.

MBMA is the holding company of several operating entities located in Indonesia Morowali Industrial Park (IMIP) and Konawe. The Company owns three Rotary Kiln Electric Furnace (RKEF) smelters, one nickel matte converter, an Acid Iron Metal (AIM) operation, and a nickel mine. MBMA also has equity participation in High-Pressure Acid Leach (HPAL) plants in IMIP. As of December 31, 2025, its shareholders consisted of PT Merdeka Energi Nusantara (50.04%), Huayong International (Hong Kong) Limited (7.55%), PT Alam Permai (5.46%), Winato Kartono (2.03%), Anthony Kartono Tan (0.01%), and the public (34.91%). (ends)